Home - Client Transactions - $48m Growth Funding for Transport and Logistics Business

$48m Growth Funding for Transport and Logistics Business

$48m Growth Funding for Transport and Logistics Business

Service

$48m Growth Funding for Transport and Logistics Business

Client

Private Family Business

Location

NSW / VIC

Industry

Business and Corporate finance

Deal Team

Lead Advisor

Tom Renda

Director

Co-Founder Tom Renda brings 35 years of experience in front line and Senior Executive roles in Business, Corporate and Institutional Banking across 3 major banks.

Tom’s area of expertise is working with large private businesses and small and mid cap listed companies providing advice and solutions on:

  • Debt structuring encompassing:
    • Debt sizing analysis,
    • Covenant calibration,
    • Optimal capital stack analysis across alternate debt products,
    • Working capital analysis
  • Mergers and Acquisition Funding
  • Growth and Re-Gearing Finding
  • Arranging Club Transactions
  • Credit positioning and work out negotiation with financiers
  • Structured Finance

Thomas (Tom) Renda is a credit representative (510599) of BLSSA Pty Ltd ACN 117 651 760 (Australian Credit Licence 391237)

Co Lead Advisor

Calvin Shum

Corporate Analyst

Calvin Shum brings over a decade of experience in the Banking and Finance sector having held front line positions in retail, business banking, and commercial broker segments at CBA, ANZ, and NAB, where his most recent role was Senior Business Banker at NAB.

Leveraging his extensive knowledge of commercial and consumer lending processes, and with firsthand experience of credit and risk assessment gained across 3 major banks, Calvin has the banking “know how” that enables
him to craft highly effective and bespoke debt funding solutions to help his client base grow their business.

Calvin’s areas of expertise includes:

  • Diversified SME and Emerging Corporate Business lending
  • Commercial property development funding solutions
  • Commercial and residential property investment
  • Lending Covenant analysis and debt sizing
  • Security structuring

The Challenges

  • Client had embarked on a restructure of its business operations, requiring a new depot close to Port of Melbourne which would materially increase fleet utilisation
  • Standard 5-year fleet lease terms were soaking up cash that could be better deployed in funding working capital for organic growth and restricted the business from flexible reconfiguration of its fleet required to optimise the new operating structure.

Our Solution

  • Transaction tendered to several banks with a comprehensive IM outlining the strategic rationale for the structure requested which included;
    • A shift from traditional 5-year lease funding to a Corporate facility based on earnings, transitioning $15m of fleet funding to a combination of interest only and 10-year term finding.
    • Full debt funding of the new depot on interest only terms based on existing balance sheet strength following years of mandated amortisation

Client's Result

  • Facility structure that allows our client full flexibility in acquiring and disposing of vehicles, allowing a faster refresh of the fleet with targeted vehicle change over every 2 years
  • Reduction in mandated annual amortisation of several $m allows self-funding of increased working capital resulting from increased fleet utilisation and organic growth in revenues.